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Proposing indicators to measure achievement and shortfall inequality consistently

Casilda Lasso de la Vega () and Oihana Aristondo ()

Journal of Health Economics, 2012, vol. 31, issue 4, 578-583

Abstract: In several economic fields, such as those related to health or education, the individuals’ characteristics are measured by bounded variables. Accordingly, these characteristics may be indistinctly represented by achievements or shortfalls. A difficulty arises when inequality needs to be assessed. One may focus either on achievements or on shortfalls but the respective inequality rankings may lead to contradictory results. In this note we propose a procedure to define indicators that measure equally the achievement and shortfall inequality. Specifically, we derive measures which are invariant under ratio-scale or translation transformations, and a decomposable measure is also obtained. As the indicators proposed depend on the distribution bounds, families of indices that guarantee the same inequality rankings regardless of the distribution maximal levels are identified.

Keywords: Inequality measurement; Health inequality; Achievements; Shortfalls (search for similar items in EconPapers)
JEL-codes: I30 D63 (search for similar items in EconPapers)
Date: 2012
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Working Paper: Proposing indicators to measure achievement and shortfall inequality consistently (2010) Downloads
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DOI: 10.1016/j.jhealeco.2012.02.006

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Journal of Health Economics is currently edited by J. P. Newhouse, A. J. Culyer, R. Frank, K. Claxton and T. McGuire

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